management information systems, second edition effy oz chapter 7 the internet, intranets, and...
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Management Information Systems, Second EditionEffy Oz
Chapter 7Chapter 7The Internet, Intranets, The Internet, Intranets, and Extranetsand Extranets
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Learning ObjectivesLearning Objectives
When you finish this chapter, you will
Know what the Internet is.
Know the features for information exchange that can be conducted over the World Wide Web.
Understand how the Web facilitates electronic commerce.
Be able to generate basic ideas for new business ventures utilizing the Web.
Appreciate the major risks and limitations of using the
Web for business activities.
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What is the Internet?What is the Internet?The Development of the Internet
ARPANET was an open system designed for the free flow of information, but available only to members of academic institutions and some of the defense industry.
U.S. government decided to split the network into a civilian one and a military one. Civilian network became the Internet
Internet is now a network of networks.
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What is the Internet?What is the Internet?
Figure 7.1 The Internet connects millions of servers.
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What is the Internet?What is the Internet?
Growth of the Internet Number of servers
From a few hundred in 1993, to more than 43,000,000 by mid-1999
Number of users More than 200 million; increased rapidly during 1999
Commercial Online Services Companies like America Online provide “online”
service to paying subscribers on their private networks.
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What is the Internet?What is the Internet?
Figure 7.2 World growth of the Internet
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What is the Internet?What is the Internet?
Figure 7.3 The number of Internet domain servers continues to grow
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Internet DomainsInternet Domains
A domain name is assigned to each IP number.
Internet servers are grouped into different domains.
Domain names are registered by one of a group of companies authorized to assign unique names.
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Internet DomainsInternet DomainsFigure 7.4 Examples of Internet address suffixes
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Internet DomainsInternet Domains
What’s on the Internet?
E-mail and file transfer
News groups
Internet Relay Chat (IRC)
Telephoning on the Web
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The World Wide WebThe World Wide Web
Hypertext transfer protocol (HTTP) Allows shared communication of text, full-color
graphics, tables, forms, video, and animation
Hypertext Mark-Up Language (HTML) Code for tagging Web files for display
Browsers Software to access the Web
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The World Wide WebThe World Wide Web
Creating Web Files HTML
System of standardized “tags” that format elements text, graphics, and animation
Web page editors Translate well-known or intuitive commands into code
Java, ActiveX, and XML Web scripting languages
Common Gateway Interfaces (CGI) and Forms Allow a computer that is accessing a particular Web site to
have some similar functions
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The World Wide WebThe World Wide Web
Figure 7.5 How a CGI works
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The World Wide WebThe World Wide Web
Frames Sections of a Web page that let a browser explore a site in
different ways on the same page
VRML (Virtual Reality Modeling Language) Standard for describing interactive three-dimensional scenes
delivered across the Internet
Cookies Special file a Web site saves on the surfer’s hard disk so the
site can remember something about the surfer later
Creating Your Own Web Pages Search the Web for HTML tutorials View and study the source document of a Web page
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Intranets and ExtranetsIntranets and Extranets
Intranet
A within-organization computer network that uses Internet technologies to communicate
Extranet
Uses Internet technologies to facilitate communication and trade between an organization and its business partners, such as suppliers
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Intranets and ExtranetsIntranets and Extranets
Figure 7.6 An intranet, an extranet, and the Internet from an individual user’s perspective
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Intranets and ExtranetsIntranets and Extranets
Figure 7.7 Internet, intranet, and extranet potential for productivity enhancement
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IntranetsIntranets
Figure 7.8 Savings resulting from the Internet, intranet, and extranet e-commerce
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Establishing a Web SiteEstablishing a Web Site
Site Name
Points of Presence
Line Capacity
Site Maintenance
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Establishing a Web SiteEstablishing a Web Site
Figure 7.9 Transfer times of a 10-MB file by different media
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Business on the InternetBusiness on the Internet
Business-to-Business Trading
Electronic Data Interchange
Exchanges and Auctions E-catalogs
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Business on the InternetBusiness on the Internet
Business-to-Consumer Trading Advertising
Portals Free Internet applications
E-Shopping E-Payment Auctions and reverse auctions Selling content Selling software Data push Stock trading for all
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Business on the InternetBusiness on the Internet
Figure 7.10 Web-shopping benefits
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Figure 7.11 Estimated unique visitors to individual Web sites during 8/09/99-8/15/99
Business on the InternetBusiness on the Internet
Web Demographics
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Business ConsiderationsBusiness Considerations
Web Costs
The least costly sites are those constructed simply to showcase the company’s products or services.
The most expensive sites are those designed to enable electronic commerce.
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Business ConsiderationsBusiness Considerations
Figure 7.12 The average cost to a company offering a Web site for electronic commerce
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Business ConsiderationsBusiness Considerations
Figure 7.13 Do’s and Don’ts in Web site construction for commercial purposes
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Business ConsiderationsBusiness ConsiderationsRisks to Organizations
Computer viruses Interception of passwords and codes by an
unauthorized hacker Interception of charge account numbers Illegal or socially objectionable use of a site Potential misrepresentation
Risks to Consumers
Eavesdropping and interception Misrepresentation
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The Nations:The Nations:Who is on the Net?Who is on the Net?
While the U.S. is leading in developing new technologies for the Net, other nations are not far behind.
Finland has the highest ratio of Internet servers to users.
Israeli companies are heavily involved in developing high-quality Internet phone software.
Singapore’s government has invested over $2 billion in state-of-the-art technology infrastructure.
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Figure 7.14 The number of citizens per Internet server around the world
Finland 25 Japan 470
U.S. 50 Taiwan 850
Australia 60 South Africa 930
Canada 70 South Korea 1,550
Netherlands 90 Brazil 8,000
Singapore 125 Thailand 15,000
Britain 130 Indonesia 87,000
Germany 180 China 561,000
Israel 185 India 1,200,000
Hong Kong 310
Source: Network Wizards; Killen & Associates, 1997.
The Nations: The Nations: Who is on the Net?Who is on the Net?
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Ethical and Societal IssuesEthical and Societal IssuesRoad Bumps on the Electronic SuperhighwayRoad Bumps on the Electronic Superhighway
Free Speech From the advent of the Web, ‘inappropriate’
material has been posted and disseminated throughout the world.
There have been calls to sensor what is transmitted, especially pornography, violence, and racial slurs.
Spamming Flooding a party’s e-mail box with messages
as a means of protest is disruptive.